o taller adults make more money? The authors of a paper investigated the association between height and earnings. They used the simple linear regression model to describe the relationship between x = height (in inches) and y = log(weekly gross earnings in dollars) in a very large sample of men. The logarithm of weekly gross earnings was used because this transformation resulted in a relationship that was approximately linear. The paper reported that the slope of the estimated regression line was b = 0.028 and the standard deviation of b was sb = 0.002. Carry out a hypothesis test using ? = 0.05 to decide if there is convincing evidence of a useful linear relationship between height and the logarithm of weekly earnings. Y
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
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